Cullinan expands autoimmune focus with new T cell engager license

CAMBRIDGE, Mass. - Cullinan Therapeutics, Inc. (NASDAQ:CGEM), a clinical-stage biopharmaceutical company with a current market capitalization of $536 million, has acquired an exclusive license for velinotamig, a BCMAxCD3 bispecific T cell engager, from Genrix Bio. The agreement, which excludes Greater China, aims to develop this therapy for autoimmune diseases, leveraging the potential of T cell engagers as a novel treatment approach.

Velinotamig has shown promising efficacy in Phase 2 trials for relapsed/refractory multiple myeloma, and Cullinan plans to repurpose it for autoimmune conditions. Nadim Ahmed, CEO of Cullinan Therapeutics, expressed confidence in the ability of T cell engagers to innovate in the treatment of autoimmune diseases, particularly those driven by long-lived plasma cells.

The license agreement involves an upfront payment of $20 million by Cullinan to Genrix Bio, with additional future payments that could total up to $692 million in development, regulatory, and sales milestones, plus tiered royalties on sales outside of Greater China. According to InvestingPro data, Cullinan maintains a strong financial position with a healthy current ratio of 11.62, indicating robust liquidity to support such strategic investments.

Cullinan’s strategy includes a Phase 1 study in China by Genrix Bio later this year, with results expected to accelerate global development. Cullinan will then take over further development of velinotamig for autoimmune diseases.

The financial terms of the deal affirm Cullinan’s financial guidance, with sufficient cash resources projected into 2028. The company is recognized for its expertise in developing T cell engagers and maintains a portfolio aimed at addressing significant unmet medical needs in both autoimmune diseases and cancer.

This strategic move underscores Cullinan’s commitment to expanding its pipeline and offering new therapeutic options to patients. Wall Street appears optimistic about the company’s prospects, with analyst price targets ranging from $17 to $35 per share. InvestingPro analysis suggests the stock is currently undervalued, with additional insights and financial metrics available to subscribers. The information reported is based on a press release statement from Cullinan Therapeutics and InvestingPro data.

In other recent news, Cullinan Therapeutics has initiated a clinical study for its drug candidate CLN-978, targeting patients with Sjögren’s disease in the United States. This follows FDA clearance of the Investigational New Drug Application for CLN-978, which is also being explored for systemic lupus erythematosus and rheumatoid arthritis. The Sjögren’s disease trial will assess safety, tolerability, and pharmacological properties, with a focus on patients with active, moderate to severe disease. Additionally, the European Medicines Agency has approved Cullinan’s Clinical Trial Application for CLN-978, paving the way for a Phase 1 trial in Europe focused on rheumatoid arthritis. The trial will evaluate the drug’s safety and efficacy in patients with difficult-to-treat conditions and will take place at institutions in Germany and Italy. CLN-978 is a bispecific T cell engager designed to target B cells, including those with low CD19 expression levels. The drug is part of a broader research effort, with studies also ongoing for systemic lupus erythematosus in the U.S., Europe, and Australia. These developments are based on press release statements from Cullinan Therapeutics.

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